Vodafone loses million customers in 2013

Media Reporter

Vodafone's struggles have continued with the mobile provider losing more than 1 million customers in 2013.

Vodafone credits the sharp decline in its customer base to the deactivating of inactive accounts across its Vodafone, 3 and Crazy John's brands.

In the 2013 calendar year, Vodafone's total customer base declined 1,231,000 to just over 5.3 million.

However, the telco said after a substantial decline in Vodafone brand users in the first half, losses plateaued in the third quarter and there was a modest increase in the final three months of the year.

Vodafone added 800,000 4G devices since launching its network in June 2013.

In recent years Vodafone has been a brand scarred by the backlash of customers angry over the network's poor coverage, slower speeds and high drop-out rate, which reached its peak in 2010-11.

This included threats of a class action lawsuit from more than 23,000 customers.

On Monday, Vodafone's Australian joint-venture partner Hutchison Telecommunications reported a $230 million loss for the full calendar year, compared with a $393.5 million loss in the previous year.

Hutchison said net customer decline has abated and the loss of high-value customers has been reduced, as the company continues to try and turnaround.

"There was significant decrease in operating expenses as a result of cost optimisation in prior years which included the full-year impact of nearly halving of non-customer-facing staff and reducing operational expenditures. In addition, the restructuring costs incurred in 2012 were not repeated in 2013," the company said in its financial report.

Hutchison said it was confident that the progress seen from its turnaround plan would continue under incoming Vodafone Australia chief executive Inaki Berroeta.

Mr Berroeta is chief executive in Romania. He will replace Bill Morrow who has taken up the role of chief executive at NBN Co.

‘‘At the halfway point in its business turnaround, [Vodafone Hutchison Australia] is on track and [Hutchison] is committed to its investments in VHA and will continue to support VHA to growth and profitability in the future,’’ Hutchison said.